Browsing by Author "Lahtinen, Lauri"
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- Cross-border fundraising of Finnish venture capital funds
Perustieteiden korkeakoulu | Master's thesis(2024-08-21) Lahtinen, LauriIn recent years, societies have become increasingly conscious of the importance of venture capital in creating innovations and fostering fast-growing companies that can have a significant positive impact on local economies by creating jobs, generating tax income, and attracting global talent, for example. One of the key elements of creating a vibrant venture capital ecosystem is to ensure the fund-raising activities of local VCs are thriving. Often when the VC funds of an eco-system continue growing, there becomes a point in the evolution of the market when capital needs to be raised also largely from cross-border investors. The Finnish VC ecosystem seems to be currently at that point in its evolution, and therefore, the present study aims to explain what has historically driven the low cross-border fundraising volumes of Finnish VC funds and to explore whether any existing bottlenecks from the cross-border fundraising of Finnish VC funds could be removed. More specifically, the thesis introduces the key requirements for creating a fostering cross-border fundraising environment in Finland and what are the potential positive impacts of implementing changes to create such an environment. To define these suggestions, the thesis research is conducted as a mixed methods study that starts with a descriptive quantitative analysis and continues to a more comprehensive qualitative analysis. The primary data of the qualitative part of the thesis was collected through interviews with 15 VC fund managers, 6 limited partners, 8 experts, and 2 buyout fund managers, which together represent 31 informants from 5 countries. The main findings of the thesis include identifying the key reasons for the relatively low historical cross-border volumes of Finnish VC funds as well as proposing a model for the development areas of the Finnish VC ecosystem. The main foundation of the proposed model is that the Finnish society and VC ecosystem would benefit from having a larger later-stage VC fund, which on the other hand, would require attracting substantially more cross-border capital. At the same time, the findings of this study propose that the taxation of cross-border LPs in Finland is currently hindering many of the largest and most prominent fund of funds from investing in Finnish VCs. This thesis contributes to academic literature as one of the first qualitative studies of the present topic. Furthermore, the present research aims also to guide Finnish decision-makers in making better-informed decisions around the topic. - Taajuushyppely pan-eurooppalaisessa matkapuhelinjärjestelmässä
Helsinki University of Technology | Master's thesis(1988) Lahtinen, Lauri